WOOLWORTHS PHARMACY

July 25, 2007

Q. What is the Woolworths Pharmacy initiative?
A. At Woolworths we’re always looking for ways to make our customers’ lives easier. Offering them the convenience of a “one-stop” shop that includes a full service pharmacy is one of the ways we’re doing that.
Q. What is the purpose of the Pharmacy initiative?
A. The primary purpose is to provide existing and potential customers with a convenient health and wellness destination from a name they trust. By targeting the discerning health customer with a preventative mindset, our pharmacy offer underpins and extends our existing good food strategy.
Q. What is the current status of this initiative?
A. We’ve been granted approval for a pharmacy trial which will allow us to test the viability and sustainability of this initiative.
Q. What are our core points of difference?
A. The Woolworths Pharmacy will offer the convenience of a full-service pharmacy alongside a food market, the comfort of an edited choice of the most-wanted medicines, health products and supplements, and advice by highly trained and experienced health care professionals.
Q. Why are we following an outsourced business model?
A. We do not have the expertise in this highly regulated industry. We have appointed a well-known and highly trusted partner which adds value and credibility to this initiative.
Q. Who is the outsourced partner?
A. Following a thorough selection process, the NETCARE group, which is South Africa’s largest healthcare company, was chosen. Founded in 1985, the NETCARE group operates 64 hospitals, 52 Medicross medical facilities, 84 retail pharmacies and 44 hospital pharmacies, and is widely recognised as the premium healthcare provider in South Africa. We believe that there is an excellent “brand fit” between ourselves and NETCARE.
Q. How will this outsourced business model work?
A. The small pharmacy area behind the dispensary counter in stores will be stocked, staffed and operated by NETCARE. The responsible pharmacist and staff will be employed by NETCARE. The area in front of the dispensary counter (referred to as ‘the front shop’) will be stocked by Woolworths with products that are an extension of the existing Toiletries (F46) offer in Foods. We also see an opportunity for the introduction of a private label Woolworths offering – as well, of course, as an added opportunity to market existing beauty and baby products.
Q. What are the planned formats? How many pharmacies will be opened if the trial is successful?
A. Final formats and a rollout strategy are still to be confirmed.
Q. Who is seen as pharmacy competition in the retail environment?
A. Dischem, Pick ‘n Pay, Shoprite, Clicks and independent pharmacies.
Sean Lilley
Woolworths Marketing
Stores. Franchise Local, Africa, Middle East, Engen.
Tel +27 21 407 2544
Fax +27 21 407 3412
Cell +27 83 267 6347

Q. What is the Woolworths Pharmacy initiative?
A. At Woolworths we’re always looking for ways to make our customers’ lives easier. Offering them the convenience of a “one-stop” shop that includes a full service pharmacy is one of the ways we’re doing that.